Chapter 1-10 Acc

A company performed $17,270 of services and received $6.000 in cash with the remaining amount to be paid in 60 days with no interest. What would the effect of this transaction on the company's current month-end accounting equation?

$17,270 increase in Assets; No effect on Liabilities; $17,270 increase in Stockholders' Equity

A ledger is

A financial statement that maintains all account transactions

If liabilities increases 75,000 and equity decreases 30,000 then assets are

A=L+E. 75,000-30,000=45,000

The closing process at the end of each accounting period

All of the above

Which of the following represents an aspect of the accounting environment that may create ethical issues.

All of the above.

The entry to write-off of Dominick, Inc A/R using the allowance method is

Allowance for doubtful accounts A/R

General Ledger Question

Big Big Small Small

Which of the following exists as a legal entity for tax purposes?

Corporation

Adjustment for office supplies problem.

Debitoffice suppose 254, credit prepaid office 254

Dividends account normally has a credit balance since it's an equity account

False

Major Function of managerial accounting is to provide general purpose financial statements for parties outside the organization.

False

Trial balance is the list of the general ledger with their respective debit and credit.

False

Company's ability to pay off short-term financial obligations

Liquidity

Expense recognition system (matching) principle states:

Net Income is determined by linking operation cash receipts with operation cash expenses

Retained Earnings

RE beg - NI - Div

Resources owned or controlled by a company that are expected to yield benefits are

Revenues

Company's ability to pay long term assets

Solvency

When should revenue be recognized?

The date the money is received

Net Income

Total Rev - Exp

The cost principle states that assets are initially recorded at the amounts paid to acquire the assets.

True

Unearned rev is a liability

True

Match the following tupes of accounts of a-d with each of the following transactions 1 through 4 a. Prepaid exense b. Unearned revenue c. Accrued expense d Accrued revenue

Used to record costs paid, but not incurred Used to record payment received in advance of providing a service or product. Used to record costs incurred, but not paid. Used to record revenue earned but not received.

A debit is on

the left side